William Blair Reiterates Outperform on SpaceX
William Blair analyst Louis DiPalma reiterated an Outperform rating on SpaceX (NASDAQ: SPCX).
“SpaceX reported second-quarter earnings in its first quarterly earnings report as a publicly traded company after completing its historic $86 billion IPO.
SpaceX’s Starlink broadband network that features fiber-like speeds from its constellation of 10,000 low-Earth-orbit satellites is rapidly taking market share from global telecom operators.
This trend should further accelerate with the new third-generation (V3) satellites, which generate 10 times the amount of capacity relative to the second-generation (V2) satellites.
In addition, growth will be stimulated by greater customer awareness from airline Starlink ongoing rollouts across 41 airlines.
Starship is inching closer to the monumental milestone of full rocket reusability that will be a key enabler for the connectivity and AI businesses to soar to new heights.
Over the long term, Starship development is critical to generate free cash flow, which we refer to as “star-bucks.” According to our math, 200 Starship launches of SpaceX’s Starmind satellite will provide 1 gigawatt of orbital compute capacity, and SpaceX believes that each gigawatt could be leased at $30 billion to $50 billion per year.”
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